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QUESTION 11 Currently, a firm has return on equity of 10%, and a plow back rate of 20%. Current EPS(earnings per share) of the firm

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QUESTION 11 Currently, a firm has return on equity of 10%, and a plow back rate of 20%. Current EPS(earnings per share) of the firm is 51. if investors' required rate of return of such firm is 164. Which of the following statement is correct? A. The more the firm piows back its earnings, the higher the stock price. OB. Current dividend paid is $0.84, o C. the stock price of the firm is $5.83 D.If the firm plows back 50% of its earnings instead of 20%, the price of the firm will not change. 5 points Saved

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